Forward Air Posts All-time High Revenue and EPS

Forward Air (NASDAQ: FWRD) reported stronger-than-expected Q4 results, topping both earnings and revenue estimates.

Solid growth strategies, as well as robust demand, drove results leading to an all-time high quarterly record for revenue, net income, and EPS.

Forward Air provides scheduled, expedited less-than-truckload (LTL) service for airlines, forwarders and related logistics businesses. FRWD provides balanced airport-to-airport options dedicated to time-definite shipments across North America.

Q4 Beat

Markedly, adjusted earnings of $1.40 per share more than doubled year-over-year and impressively beat analysts’ expectations of $1.31 per share. The company reported earnings of $0.55 per share for the prior-year period.

Further, revenues jumped 31.3% year-over-year to $459.93 million and exceeded consensus estimates of $443.31 million.

Q1 Outlook

Based on robust Q4 results, management issued the financial guidance for the first quarter of FY2022.

The company forecasts Q1-adjusted earnings in the range of $1.15 to $1.19 per share, while the consensus estimate is pegged at $1.05 per share. Revenues are projected to grow 18%-22% year-over-year.

14% Dividend Hike to $0.24

Concurrent with the earnings, Forward Air raised its quarterly dividend by 14% to $0.24 per share.

The dividend is payable on March 3 to shareholders on record as of March 18.

CEO Comments

Forward Air CEO, Tom Schmitt, commented, “We anticipate solid performance in the first quarter of 2022 with volumes expected to exceed the same period of 2021. For the month of January, our revenue per shipment increased 54.8%, weight per shipment increased 33.0% and tonnage increased 10.7% year-over-year.”

He further added, “Based on the continued precision execution of our strategic priorities, at this moment, we are ahead of pace toward our previously announced full-year 2023 targets.”

Analysts Recommendation

The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 3 Buys and 3 Holds. The average Forward Air price target of $139.40 implies 26.2% upside potential to current levels.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 100% Bullish on FWRD stock, compared to a sector average of 72%.

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